ONGC on verge of clinching Venezuelan deal

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Venezuela’s state oil company PDVSA is said to be on the verge of clinching a deal for India’s Oil and Natural Gas Corp to invest some $500 million in their San Cristobal joint venture. Eulogio Del Pino, who is also Venezuela’s Oil Minister and  the South American company’s president,  told Reuters that “We’re about to firm up ONGC’s financing to the joint venture we have in the San Cristobal field.” He said the deal, which has been under negotiation for months, would be signed “soon.”

The funds would go towards shoring up production at San Cristobal, which has fallen from a peak of over 40,000 barrels per day to around 28,000 bpd.

The deal is expected to ensure state-owned ONGC gradually receives around $530 million of unpaid dividends, though it could take years for the entire amount to be repaid.

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